USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 2.12% against the JPY and closed at 107.81 on Friday.
On the data front, Japan’s annualised housing starts 12.9% on a yearly basis in April, more than market anticipations and compared to a drop of 7.6% in the previous month. Additionally, construction orders fell 14.2% on a yearly basis in April, compared to a drop of 14.3% in the prior month. Meanwhile, the consumer confidence index unexpectedly rose to 24.0 in May, defying market expectations for a drop to a level of 12.8 and compared to a reading of 21.6 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 107.68, with the USD trading 0.12% lower against the JPY from Friday’s close.
Overnight data showed that Japan’s Jibun bank manufacturing PMI dropped to 38.4 in May, compared to a level of 41.9 in the previous month.
The pair is expected to find support at 107.21, and a fall through could take it to the next support level of 106.75. The pair is expected to find its first resistance at 108.02, and a rise through could take it to the next resistance level of 108.37.
Amid lack of macroeconomic releases in the Japan today, investor sentiment would be determined by global macroeconomic factors.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
